Tuesday, July 29, 2008

Income Inequality and the "Skills Gap," Who Knew?

I'll confess right at the outset to being no fan of David Brooks. He's the kind of "conservative" that has done plenty to help bring about the economic conditions we currently have to live with, but will then go and tell us it's all our fault for not bringing up our kids in the proper educational environment. In a recent Op-Ed in the New York Times, Brooks makes just this case, that a principal cause of the massive gulf between the haves and have-nots in the US is a "skills gap" resulting from the woeful state of education in the country. He partly bases his arguments on a new book from Claudia Goldin and Lawrence Katz, “The Race Between Education and Technology.” While few would argue about the importance of education in enabling a productive economy and just society, it's clear that rather than explore the responsibility of three decades of conservative, quasi- laissez-faire policies on the current economy and income distribution, Brooks would much rather lay the blame at the masses who have not raised their kids, in his words, "...bathed in an atmosphere that promotes human capital development ..." Man, I'm glad my mother didn't raise me that way!

We could tear down Brooks' straw-man easily enough, but let's just make a few observations. First, wages have been stagnant or declining across the class/income board for more than 20 years now. That is, even the well-educated have been sliding down the ladder, although they are of course relatively more economically secure than their unskilled brethren. Meanwhile, studies show that Americans are among the most productive workers on the planet, and yet few of the productivity gains over these last 20 years have been put back into pay-checks. Now why is that? Where did all that money go? Somehow the corporate classes keep getting richer and richer. These facts do not point fundamentally to an education problem, rather, a much more accurate diagnosis would be class warfare!

Of course we need to better educate our children, but what Brooks and his ilk fail to explore is WHY we are not able to adequately educate all our citizens. Predictably, Brooks tries to dismiss some big issues, such as globalization, outsourcing and predatory capitalism, stating that, "the populists are going to have to grapple with the Goldin, Katz and Heckman research, which powerfully buttresses the arguments of those who emphasize human capital policies. It’s not globalization or immigration or computers per se that widen inequality. It’s the skills gap."

It's hard to know where to begin with such statements. It's as if all the economic choices, decisions and policies put in place by Republican administrations, beginning with Reagan (with significant Democratic assistance, or at least acquiescence I might add), that have been the fuel on the fire of income inequality for almost 30 years now never happened! Nope, it was the "skills gap," who knew? Although education is certainly a piece in the puzzle, I would argue that conservative economic policies, essentially placing all corporate interests over those of workers, including the resulting widening income inequality, are the primary causes of any "skills gap," not the other way around.

But for me, the biggest "whopper" in Brooks' whole piece is his overarching premise, stated in the first two sentences, I quote, "Why did the United States become the leading economic power of the 20th century? The best short answer is that a ferocious belief that people have the power to transform their own lives gave Americans an unparalleled commitment to education, hard work and economic freedom."

This is just so much conservative drivel. Just like every other major industrial power, the US grew by protecting it's markets, having a strong state-sponsored sector, and maintaining unfettered access to resources basically around the globe (and a productive citizenry). The nonsense that Brooks is peddling here is this pernicious myth of American exceptionalism. This is the same myth that enables a mediocrity like George W. Bush to talk about bringing democracy to Iraq (or insert currently relevant country), and our political class will basically cheer-lead. I have yet to go to another country and find people not committed to education, hard work and economic freedom. These values are evident in most every culture I have ever encountered, therefore they cannot be the PRIMARY reasons for the United States economic success.

Much can be learned about the state of our politics and society that this kind of mumbo-jumbo is placed on the Op-Ed page of one our most influential newspapers, rather than in a landfill, where it belongs.

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